Online Trading Guidelines

Payment Process and Contribution of Payment Gateways

Electronic commerce is the medium for doing business over the Internet channel i.e. selling and buying things of user interest. Internet is having a significant and massive role in processing of user request for shopping and handy transactions for the success of e commerce function. The e-commerce is also convenient to execute, because of the hassle free nature of E-Commerce Services.

In the typical shopping environment a buyer or buyer representative needs to be physically present at the shopping center and involves in many activities like interaction with the sales person, choosing the best suited products for him or her and after spending handsome amount of time in shopping and journey etc he or she finishes the shopping. Whereas the evolution of e-commerce is reducing the time and increasing the comfort and pleasure of shopping since the delivery mechanism is getting better day by day. We can shop doing our work parallel either from the work place or home. Apart from shopping, now payments of utility bills, booking of railway or airline tickets are no burden by virtue of boon of technology in terms of e commerce.

The Payment process carries a great role in success of any virtual shopping or bill payment experience. Virtual shoppers trust on the payment process of the website which plays very vital role in success of e-commerce. The few worries that a virtual shopper have during the payment process can be whether the site is safer, will his or her card details be safe once he fills the card details etc. Here the role of payment gateways arrives which ensures the customers that the payment process is safe and smooth by means of several safety norms and secure socket layer authentication or using secure hyper text transfer protocols etc. If the shopper is satisfied with the payment gateway performance it creates a trust level and next time he or she will not hesitate to enter the card details if with same gateway and vice versa.

Payment Process :-

A user is hardly aware how the payment is done to put more elaboration on payment process below is the brief outline of the internal payment system.

a) A shopper makes online purchase and enters the card details, cvv etc.

b) A code or program in the payment page of site sends the data to Transaction processor.

c) Transaction processor checks user account to verify funds and account details, validity etc.

d) Transaction processor gets the result back from the bank.

e) Transaction processor returns the result to the web page saying the purchase is valid or denied.

f) For valid transaction only Transaction processor sends the data to settlement processor.

g) Settlement processor sends authorization to users bank to send money to merchant bank.

h) Shoppers bank send fund to merchant bank.

i) Merchant receives fund and details of transactions.


All the above steps are executed in the seconds, and since the structure is complex there may be some chances of chaos or error in transaction activities but the research and development on the area has given the sound infrastructure of payment process in terms of payment gateways and score of e-commerce activities increasing day by day. Since the user is assured that his funds are going to be processed in the proper manner and these trust level have made many payment gateways renowned and well known. We can say that payment process ease and payment gateways role is very significant in the success of e-commerce industry.

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